When you don't have a fixed-term tenancy agreement
If you do not have a tenancy agreement (a lease) for a fixed term, or your agreement is about to expire or has expired, you can end the tenancy by giving 28 days notice in writing or, in some circumstances, 14 days notice in writing. See the When you want to leave leaflet for more information.

When you have a fixed-term tenancy agreement
If you do have a fixed-term tenancy agreement, and you want to move out before the term of the tenancy agreement ends, you may be able to break your agreement in one of the following ways.

Mutual consent
Any tenancy agreement can be ended by mutual agreement between the landlord and tenant. We strongly advise that any such agreement be put in writing, and that the agreement state that you will not be liable for any additional costs because of the termination. You and your landlord or agent should sign the agreement. Make sure you keep a copy of the agreement.

When the landlord is in breach
If your landlord or agent is in breach of the Residential Tenancies Act 1997 or of a term of your tenancy agreement, you may be able to end your tenancy early. This applies if the landlord

• hasn't made sure the property was reasonably clean and vacant when you were supposed to move in
• doesn't make sure you have peace and quiet
• doesn't keep the property in good repair
• doesn't provide locks, or doesn't give you a key when they change a lock
• doesn't replace a faulty water appliance with an A-rated appliance

If the landlord has done any of these things, you can send them a Breach of Duty Notice. This notice tells the landlord they must fix the problem or (if appropriate) pay compensation within 14 days. If the landlord doesn't do so, you can apply to the Tribunal for a Compliance Order. If the landlord does not comply with the Tribunal order, you can send the landlord a Notice of Intention to Vacate for failing to comply with the Tribunal order. You should send the notices by certified or registered mail (allow 2 days for delivery). Keep copies for your records. For copies of these notices or assistance with your application for a Compliance Order, contact the Tenants Union or a tenant advice service.

Assignment or sub-letting
You may be encouraged to assign your tenancy agreement to another tenant or to sub-let the property. This is not always a straightforward option. It is less complicated if you formally end your tenancy agreement and the new tenants enter into a completely new agreement. See the Assignment and sub-letting leaflet for more information.

Hardship
If the continuation of the tenancy agreement will cause you severe hardship, you can apply to the Victorian Civil and Administrative Tribunal for an order that the term of your agreement be reduced. You should ask the Tribunal to hear the case as quickly as possible. You will have to prove to the Tribunal that

• there has been an unforseen change in your circumstances (eg you have lost your job)
• you will suffer severe hardship if the agreement continues
• the hardship you will suffer if the agreement is not ended will be greater than the hardship of the landlord if the agreement is ended

The Tribunal can order that you pay compensation to the landlord for any loss caused by the tenancy agreement being ended early. This often makes a hardship application of no practical advantage, as the landlord often recovers the same amount in compensation as they would have received if the tenancy agreement was simply broken by the tenant.

Breaking a tenancy agreement
Breaking a tenancy agreement can be costly. The landlord can claim compensation for all reasonable costs incurred as a result of your ending the tenancy agreement early. The costs you could be liable for include

• a reletting fee (usually one or two weeks rent) when the property is let by an agent and the agent charges the landlord a reletting fee for finding new tenants
• advertising costs
• rent for a reasonable period until new tenants move in, or until the end of the fixed term (whichever happens first)

If you want to end your tenancy agreement early, you should give as much notice as possible in writing (keep a copy of your letter). It is a good idea to state the exact date you will be leaving and that you want the landlord (or agent) to find a new tenant. The landlord is required to take all reasonable steps to find a new tenant as quickly as possible. The more you can do to help find a new tenant (such as having the property available for inspection, or advertising the property yourself) the less you are likely to have to pay.
If you move out without giving notice, or if the property has not been relet when you move out, you should only pay rent up to the day you vacate. The landlord may still be able to claim any lost rent after that date as compensation, but they are more likely to make an effort to find new tenants if they don't have any rent coming in. You should make sure the landlord or agent is trying to relet the property after you move out, and find out what date new tenants move in. Once the property is relet, you can then pay the landlord compensation for the lost rent.

Keep in mind that while you will probably have to pay some compensation to the landlord, you are only liable for those costs which are reasonable and which the landlord can show were caused by you breaking the tenancy agreement. For example, if you moved out of the property 9 months into a 12-month tenancy agreement, you should only be liable to pay a small proportion of the reletting and advertising fees, since the landlord would have had to pay them in 3 months time anyway. The landlord also has a duty to keep their loss to a minimum, so if they do anything to make it harder for them to find a new tenant (such as put the rent up), or if they don't make an effort to find a new tenant, you can argue that you should not have to pay.
If you think the costs the landlord is claiming are unreasonable, don't agree to pay. The landlord will then apply to the Tribunal for compensation or to claim against your bond. The landlord must give you notice of their claim and you will have a chance to put your side of the story to the Tribunal. See the Defending a compensation claim leaflet for more information.

For more information, contact the Tenants Union on % (03) 9416 2577.